One of the biggest drivers of GDP and economic growth is the amount of trade a country is able to facilitate. Given this reality and given our eventual graduation from the status of a Least Developed Country (LDC), it only makes sense that increased trade is the way forward.
Unfortunately, there are hurdles with our approach to trade; weaknesses in our logistics often work as an impediment when it comes to the achievement of this objective, which is a crying shame, to say the least.
According to experts, due to the infrastructural deficiencies of our ports, 35% of export-bound products get damaged. When this percentage is applied to the huge bulk of existing products that we export on a day-to-day basis, the numbers rack up. As such, the remarks made by prominent businessman Salman F Rahman about the need for the decrease of domestic logistics costs and the facilitation of trade are both timely and forward-thinking.
Bangladesh has a justified reputation of being a country rattled with bureaucratical incompetence and red tape. Bangladesh historically ranked low in the Ease of Doing Business Index -- a list that compares countries on the basis of how easy it is to do business based on the regulative environment of the country. Bangladesh also lacks a solid infrastructural foundation for the export of goods that generally works as an impediment for the local exporters of the country.
We also need to focus on trade facilitation -- given that it is as much a part of the economic logistical apparatus as physical infrastructure. As globalization emerged as the dominant force in the 20th century, countries like Vietnam and China have been able to make their mark due to their willingness and forward-thinking in making the exports of their country more competitive in the global arena. The Japanese yen is also regulated with a flexible exchange rate to keep the economy competitive and the products attractive. As we grow our non-RMG sectors, these are countries that will have to learn a lot from.
All in all, these are lessons that the government has to take to heart. Fortunately, authorities are already working on improving our infrastructure through investing in the Chittagong port and the completion of the Matarbari deep sea port. The same level of attention has to be given to the area of trade facilitation as well.
The demands of our future realities necessitate a boost in our overall trade. To achieve that goal, we cannot ignore the faults in our logistical apparatus any longer.
